Securities and Exchange Commission v. Penn et al

Filing 399

ORDER DIRECTING FIRST REPUBLIC BANK TO TURN OVER FROZEN FUNDS IN PARTIAL SATISFACTION OF JUDGMENTS: ORDERED that the Commission shall serve a copy of this Order upon First Republic, Lawrence E. Penn III ("Penn") (in his capacity as owner o f Camelot Acquisitions Secondary Opportunities GP, LLC ("CASO GP")), Camelot Group International ("CGI"), Camelot Acquisitions Secondary Opportunities Management, LLC ("CASO Management"), CM Growth Capital Partners, L. P. f/k/a Camelot Acquisitions Secondary Opportunities Offshore, LP ("CASO Offshore"), and a representative of each of the persons who invested in CASO Co-Invest A, LLC ("CASO Co-Invest"). Service may be made by electronic mail up on the consent of the receiving party, by overnight delivery service such as United Parcel Service, or by certified mail, return receipt requested. FURTHER ORDERED that the account balances turned over pursuant to Sections III, IV and V of this Ord er shall be paid to the Commission in three separate payments, each specifying the judgment to which such payment relates, by one of the following means: as set forth herein. FURTHER ORDERED that within 14 days from receipt of this Order, First Repub lic shall turn over to the Commission all funds remaining in CASO Management's account with account number ending in 1992. Such payment shall specify that payment is made pursuant to this Order in satisfaction of the Judgment entered against CAS O Management entered on April 1, 2020. FURTHER ORDERED that within 14 days from receipt of this Order, First Republic shall turn over to the Commission all funds remaining in CGI's account with account number ending in 3170. Such payment shall specify that payment is made pursuant to this Order in satisfaction of the Judgment entered against CGI on April 1, 2020. FURTHER ORDERED that within 21 days from receipt of this Order, First Republic shall release any restrictions previously impos ed, pursuant to the Asset Freeze Orders, on the use of any accounts in the names of, or controlled or owned by, any of the Defendants, if such accounts are for credit cards or lines of credit, or have zero or negative balances. First Republic may r estore the account(s) to normal operation or, at its election, close the account(s). FURTHER ORDERED that this Court shall retain jurisdiction to enforce compliance with this Order. And as set forth herein. (Signed by Judge Valerie E. Caproni on 3/31/2021) (ama)

USDC SDNY
DOCUMENT
ELECTRONICALLY FILED
DOC #:
DATE FILED:

The Plaintiff Securities and Exchange Commission (the “Commission”) having moved
for a turnover order directed to non-party First Republic Bank (“First Republic”) with respect to
certain accounts, and for the release of certain other accounts from the asset freeze imposed and
continued by Orders of this Court issued on January 30, 2014 (Docket Entry 2), July 11, 2014
(Docket Entry 56), October 1, 2018 (Docket Entry 300) and/or March 15, 2020 (Docket Entry
335) (collectively, the “Asset Freeze Orders”), and the Court having considered the papers
submitted on such motion, and it appearing that such an order should be issued, it is hereby:

that the Commission shall serve a copy of this Order upon First Republic,
Lawrence E. Penn III (“Penn”) (in his capacity as owner of Camelot Acquisitions Secondary
Opportunities GP, LLC (“CASO GP”)), Camelot Group International (“CGI”), Camelot
Acquisitions Secondary Opportunities Management, LLC (“CASO Management”), CM Growth
Capital Partners, L.P. f/k/a Camelot Acquisitions Secondary Opportunities Offshore, LP (“CASO
Offshore”), and a representative of each of the persons who invested in CASO Co-Invest A, LLC
(“CASO Co-Invest”). Service may be made by electronic mail upon the consent of the receiving
party, by overnight delivery service such as United Parcel Service, or by certified mail, return
receipt requested.

that the account balances turned over pursuant to Sections III,
IV and V of this Order shall be paid to the Commission in three separate payments, each
specifying the judgment to which such payment relates, by one of the following means:
a. Electronically, wherein the Commission will provide detailed ACH
transfer/Fedwire instructions upon request made to [phone] and/or
[e-mail];
b. Direct payment from a bank account via Pay.gov through the Commission’s
website at http://www.sec.gov/about/offices/ofm.htm; or
c. By certified check, bank cashier’s check, or United States postal money order,
made payable to the “Securities and Exchange Commission” and setting forth
the title and civil action number of this action (“SEC v. Penn, et al., 14-cv0581”) and the name of this Court (“United States District Court, Southern

2

District of New York”); and specifying the judgment to which such payment
relates. The funds may be hand-delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
HQ Bldg., Room 181, AMZ-341
6500 South MacArthur Boulevard
Oklahoma City, OK 73169
First Republic shall simultaneously transmit photocopies of evidence of payment and case
identifying information to SEC attorneys Karen E. Willenken and Elizabeth R. Goody, by
electronic mail to [e-mail] and [e-mail].

that within 14 days from receipt of this Order, First Republic
shall turn over to the Commission all funds remaining in CASO Management’s account with
account number ending in 1992. Such payment shall specify that payment is made pursuant to
this Order in satisfaction of the Judgment entered against CASO Management entered on
April 1, 2020.

that within 14 days from receipt of this Order, First Republic
shall turn over to the Commission all funds remaining in CGI’s account with account number
ending in 3170. Such payment shall specify that payment is made pursuant to this Order in
satisfaction of the Judgment entered against CGI on April 1, 2020.

that within 14 days from receipt of this Order, First Republic
shall turn over to the Commission all funds remaining in the accounts of CASO GP, CASO CoInvest and CASO Offshore, with account numbers ending in 1984, 9356 and 6930. Such

3

payment shall specify that payment is made pursuant to this Order in satisfaction of the
Judgment entered against Lawrence E. Penn III entered on October 1, 2018.

, that by making the payments required by Sections III, IV and
V of this Order, First Republic shall be forever released and discharged from any liability with
respect to such funds to Penn or CGI, or to any person or entity claiming a right in and to such
funds derived from Penn or CGI, and from any liability with respect to such funds as to the
Commission.

that within 21 days from receipt of this Order, First Republic
shall release any restrictions previously imposed, pursuant to the Asset Freeze Orders, on the use
of any accounts in the names of, or controlled or owned by, any of the Defendants, if such
accounts are for credit cards or lines of credit, or have zero or negative balances. First Republic
may restore the account(s) to normal operation or, at its election, close the account(s).

that this Court shall retain jurisdiction to enforce compliance
with this Order.
Dated:

HON. VALERIE E. CAPRONI
ON.
CAPRONI
R
UNITED STATES DISTRICT JUDGE

4